2018 (10) TMI 1934 - HC - Insolvency and Bankruptcy

Seeking ex parte ad interim injunction - Seeking to restraint the defendants No.1 to 15 from pledging mortgaging encumbering disposing of selling or alienating any of their assets shares properties (movable and immovable) in any manner whatsoever without obtaining the prior written permission of the Receiver of the plaintiff - HELD THAT - It is pleaded that a Facility Agreement has now been executed on 14.5.2018 by defendant No.3/ SARE Gurugram Private Limited with defendants No.16 and 17 pursuant to which the loan facility vide an aggregate amount of INR 100 Crores is proposed to be advanced to defendant No.3 on security of the assets of defendant No.3 and other subsidiaries of SARE Group. It is pleaded that this arrangement which has yet not been completed is wholly contrary to the Agreement between the parties and will cause irreparable loss and injury to the WAFRA Group if the securities are allowed to be further pledged or given as lien. Plaintiff has made out a prima facie case in its favour. Defendants No.1 to 10 are restrained from creating any encumbrance/charge or lien or mortgage of any of their assets shares properties (movable or immovable) to any third party till the next date of hearing. Defendants 16 and 17 are also restrained from giving effect to the Facility Agreement dated 14.5.2018 to the extent of their taking lien charge security mortgage or pledge of any of the assets of defendants No.1 to 15 till the next date of hearing. Plaintiff to comply with provisions of Order 39 Rule 3 CPC within three days.

Summary

Issues:
1. Application seeking liberty to seek additional relief and institute other proceedings.
2. Registration of the plaint as a suit and issuance of summons.
3. Application for ex parte ad interim injunction restraining defendants from disposing of assets.
4. Suit seeking declaration of securities as null and void due to breach of agreement.

Analysis:
1. The first issue involves an application filed under Order 2 Rule 2 CPC seeking liberty to seek additional relief and institute other proceedings against the defendants. The application was allowed by the court, granting the petitioner the liberty to seek further relief as permissible under the law.

2. The second issue pertains to the registration of the plaint as a suit and issuance of summons. The court directed the plaint to be registered as a suit, and summons were ordered to be issued to the defendants by ordinary process and speed post, returnable on a specified date in January 2019.

3. The third issue revolves around an application filed under Order 39 Rule 1 and 2 CPC seeking an ex parte ad interim injunction restraining defendants from pledging, mortgaging, or disposing of their assets without permission. The court granted the injunction, restraining defendants from creating any encumbrance on their assets, shares, or properties until the next hearing date.

4. The fourth issue involves a suit seeking a declaration that securities and documents created by the defendants are null and void due to a breach of agreement. The plaintiff argued that the defendants were prohibited from creating any liens or encumbrances on their properties as per a prior agreement. The court found merit in the plaintiff's case and restrained defendants from creating any encumbrances until the next hearing, directing the plaintiff to comply with procedural requirements within three days.

This comprehensive analysis of the judgment highlights the key issues addressed by the court and the corresponding decisions made in each instance, ensuring a thorough understanding of the legal proceedings and outcomes.